International Business: The New Realities, 4e [Cavusgil]
Chapter 17 Human Resource Management in the Global Firm
1] ________ are citizens of the country where the MNE's subsidiary is located.
A] Third-country nationals
B] Expatriates
C] Host-country nationals
D] Parent-country nationals
Answer: C
Diff: 1: Easy
Skill: Concept
Objective: 17-1: Understand the strategic role of human resources in international business
AACSB: Analytical Thinking
2] ________ are typically the largest proportion of workers hired abroad and usually work in
manufacturing, assembly, basic service activities, clerical work, and other nonmanagerial
functions.
A] Home-country nationals
B] Parent-country nationals
C] Third-country nationals
D] Host-country nationals
Answer: D
Diff: 1: Easy
Skill: Concept
Objective: 17-1: Understand the strategic role of human resources in international business
AACSB: Analytical Thinking
3] Richard Johnson, an American citizen, is a senior manager in a telecom company based in
Texas. He is currently posted in and works from the company's subsidiary in Uganda, Africa.
Richard is a ________.
A] host-country national
B] parent-country national
C] third-country national
D] repatriate
Answer: B
Diff: 2: Moderate
Skill: Application
Objective: 17-1: Understand the strategic role of human resources in international business
AACSB: Analytical Thinking
1
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Abstract
The high rate of expatriate failure among U.S. multinationals stems from several factors: the family situation, lack of cross-cultural relational abilities, the short duration of overseas assignments, problems of repatriation, overemphasis on the technical competence criterion to the disregard of other important attributes such as relational abilities, and inadequate training for cross-cultural encounters. Tung examines the expatriation policies of 17 European and 18 Japanese multinational firms that experienced significantly lower incidences of failure than American multinationals, and found the common denominators to successful performance in these firms. They were [1] long-term orientation with regard to overall planning and assessment of performance, [2] use of more rigorous programs to prepare candidates for overseas assignments; [3] provision of a comprehensive support system to expatriates; [4] overall qualification of candidates for overseas assignments; and [5] restricted job mobility. In the European multinationals, three additional factors enhanced the incidences of success: their international orientation, longer history of overseas operations, and language capability. In the Japanese firms, two other factors that accounted for the lower failure rate were selection for overseas assignments and the role of the family. On the basis of these findings, Tung suggests that to enhance expatriate success and minimize failure, U.S. multinationals [1] adopt a longer-term orientation with regard to expatriate assignments and provide support mechanisms at corporate headquarters to allay concerns about repatriation; [2] develop a more international orientation; and [3] provide more rigorous training programs to prepare expatriates for cross-cultural encounters.
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